Direct Answer
68 SEC filers are classified under the Standard Industrial Classification codes that describe the semiconductor equipment & materials industry, and their latest annual reports show $567.1 billion of combined revenue and a median operating margin of 0.7%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Semiconductor equipment and materials companies supply the machines and consumables that make chips, from lithography and etch to chemicals and wafers. Revenue is cyclical with fab capital spending and wafer starts. The first numbers to compare across companies here are orders and backlog, revenue by customer and gross margin.
Key Industry Metrics
- Orders and backlog: New orders and those awaiting delivery. Orders lead revenue and follow chipmaker capital plans, giving visibility in a cyclical group.
- Revenue by customer: The split of sales by chipmaker. A handful of buyers account for most spending, so it shows whose fab plans matter and how concentrated results are.
- Gross margin: Revenue left after the cost of tools and consumables. Technology leadership and a larger recurring mix help, while price competition and low volume hurt.
- Service and consumables share: The portion of revenue from parts, services and materials used over a tool's life. It is steadier than new tool sales and cushions downturns.
- Regional mix: Sales by geography. It shows how much comes from regions with subsidy-driven fabs or export limits, which can change demand and tool availability.
Primary Macro Drivers
- Chipmaker capital spending: Chipmakers' budgets for tools and consumables set orders and backlog, following fab build plans.
- Node transitions and capacity builds: New fabs and smaller nodes need full sets of tools and more materials per wafer, creating bursts of orders and recurring consumables revenue.
- Export policy: Rules on which tools and customers can be served alter addressable demand and regional mix of orders and revenue.
- Demand for AI and memory: Memory and leading-edge logic makers spend most on tools, so demand for AI chips and memory shapes which suppliers see orders.
Major Risks
- Capex cycles: Chipmakers cut purchases quickly in downturns, causing sharp swings in orders; watch orders, backlog and customers' capital guidance.
- Export restrictions: New limits on selling to some customers can remove orders or service revenue; watch regional revenue mix and license disclosures.
- Customer concentration: A few chipmakers buy most tools, so one pause moves results; watch revenue by customer and backlog.
- Technology shifts: New process methods can shift value toward other tool types or suppliers; watch share commentary and research spending.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Medium |
| Industry Maturity | Growth |
| Geographic Importance | Global |
Semiconductor Equipment & Materials Filers in the SEC Record
68 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 3559, 3674. Their latest fiscal years end between 2025 and 2026, and together they reported $567.1 billion of revenue. Median revenue growth over the prior year was 16.9%. Median operating margin was 0.7% and median net margin -1.4%. Median total liabilities were 34% of total assets, and 31 of 68 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Nvidia Corp | $215.9 billion | 65.5% | 60.4% | 55.6% | FY 2026 |
| Broadcom Inc. | $63.9 billion | 23.9% | 39.9% | 36.2% | FY 2025 |
| Intel Corp | $52.9 billion | -0.5% | -4.2% | -0.5% | FY 2025 |
| Micron Technology Inc | $37.4 billion | 48.9% | 26.1% | 22.8% | FY 2025 |
| Advanced Micro Devices Inc | $34.6 billion | 34.3% | 10.7% | 12.5% | FY 2025 |
| Applied Materials Inc | $28.4 billion | 4.4% | 29.2% | 24.7% | FY 2025 |
| Lam Research Corp | $23.2 billion | 26.0% | 35.3% | 31.3% | FY 2026 |
| Texas Instruments Inc | $17.7 billion | 13.0% | 34.1% | 28.3% | FY 2025 |
The 8 largest of 68 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Semiconductor Equipment & Materials guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Semiconductor Equipment & Materials industry?
Key performance indicators for the Semiconductor Equipment & Materials industry include: Orders and backlog, Revenue by customer, Gross margin, Service and consumables share, Regional mix. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Semiconductor Equipment & Materials industry?
The Semiconductor Equipment & Materials industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Semiconductor Equipment & Materials industry?
The primary risks for Semiconductor Equipment & Materials companies include: Capex cycles, Export restrictions, Customer concentration, Technology shifts. Investors should assess each company's exposure to these factors and its track record of navigating them.